Supermarket sandwich tycoon Lydur Gudmundsson has become the latest London-based Icelander to face fraud charges in his home country in the wake of the nation's financial meltdown four years ago.

Together with his brother Agust, Gudmundsson, who is chairman and a major shareholder at the £1.68bn-turnover Lincolnshire ready meals group Bakkavör, which supplies many UK supermarkets, held a near-45% stake in Reykjavik investment group Exista before the crash. Exista was the largest shareholder in failed bank Kaupthing as well as being one of its biggest customers.

The charges against Belgravia-based Gudmundsson relate to moves in October 2008 to change the ownership of Exista at a time when Kaupthing was seeking to call in loans to the investment group. He is understood to deny wrongdoing.

Fellow London-based Icelander Sigurdur Einarsson, Kaupthing's former executive chairman, is facing separate charges in Iceland in connection with allegations of share price manipulation. He denies wrongdoing and is expected to face trial later this month.